• Of the top 10 newspapers, (ad revenues of) six grew less than 10% in 2008. Of the top 20, only two grew more than 15%.
• The only newspaper showing really substantial growth in 2008 was the Mumbai edition of Daily News and Analysis, or DNA, with 49%.
Also See Tough Times Ahead (Graphic)
• Most publications have struggled to hold on to their revenues in the fourth quarter of 2008.
• Consolidation is expected in the newspaper market.
In the coming days, the biggest threat to newspapers as an advertising medium will be radio.
Card rates are no longer sacrosanct even among leading publishers who had so far resisted discounting. With advertising money waning, publishers, already under severe stress to maintain volumes, are doling out discounts to maintain brand count. Ad expenditure could become more localized and the use of multiple-title packages could thus reduce.
Given that most new initiatives recruit relatively few readers, syndicated readership studies continue to show declining numbers for magazines. If this wasn’t enough, the ongoing global recession has amplified the fears that tough times lie ahead. At an overall level, all signs indicate a drop in magazine revenues in 2009 from 2008. Magazines also face an increasing threat from other media which offer high reach and frequency options.
Graphics by Ahmed Raza Khan/Mint
The report is based on spending data of marketeers. The data has been analysed by GroupM software METIS that uses ad volume data and then factors in rate discounts based on internal estimates. Live data from group agencies is pooled to arrive at estimates of the actual values realized by media brands.